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November 4, 2003 - 13,440 subscribers
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IRS Official Reveals Penalty-Free Ways to Fix Your Pension Plan Problems An Interactive Audio Conference, November 13, 2003, 2:00 – 3:30 p.m. ET During this audio conference, you'll learn about the recent changes to the Employee Plans Compliance Resolution System (EPCRS), the benefits of complying, as well as the penalties associated with non-compliance from an IRS official who will also answer your specific questions.
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PBGC Provides Deadline Relief for Administrators and Sponsors Affected by California Fires
Excerpt: "This Technical Update provides relief [to] any person responsible for meeting a PBGC deadline ... that (1) is located in a disaster area for which the IRS has provided relief ... in connection with filing extensions for Form 5500 series returns, or (2) cannot reasonably obtain information or other assistance needed to meet the deadline from a service provider, bank, or other person whose operations are directly affected by wildfires beginning October 21, 2003, in California." (Pension Benefit Guaranty Corporation)
Mutual Fund Scandal Outrage Keeps Growing
Excerpt: "At [a] Senate hearings Monday, regulators blasted the fund industry for the widening trading scandal, as well as shady sales practices." (USA Today)
Extensive Flaws at Mutual Funds Cited at Senate Hearing
Excerpt: "The mutual fund industry, plagued by a series of recent scandals, was battered on Monday by new details of widespread trading abuses, the removal of the top executive at a big fund company and the disclosure by federal regulators that the industry faced an imminent wave of government lawsuits." (New York Times; one-time registration required)
Links to Written Testimony at Mutual Funds Hearing: Trading Practices and Abuses that Harm Investors
Witnesses included New York Attorney General Eliot L. Spitzer and former Vanguard Group CEO John Bogle. Excerpt: "The purpose of the hearing is to explore the extent and impact of alleged trading abuses in the mutual fund industry and consider regulatory reforms necessary to mitigate such practices in the future." (U.S. Senate Committee on Governmental Affairs, Subcommittee on Financial Management, the Budget, and International Security)
New Management Named for Putnam
Excerpt: "Putnam reiterated yesterday that it would make restitution to fund shareholders for losses caused by the improper trading of fund managers. It has estimated those losses at $700 million." (New York Times; one-time registration required)
Three NYC Pensions Pull Assets from Putnam
Excerpt: "Three New York City pension plans with combined total assets of $725 million pulled their holdings from Putnam Investments ..." (Reuters via MSN.com)
Florida State Pension Not Dropping Putnam Investments
Excerpt: "Florida, for the time being, won't join the rush to the exit. State officials, in response to questions from The Herald, late Friday painted a picture of limited exposure, even though the state has more than $1 billion in Florida retirement funds invested with Putnam.... The Florida board [has begun] a review of the situation that could last up to 90 days." (The Miami Herald via NewsAlert.com)
Opinion: a Plea for Caution to the 'Late Day' Trading Scandal
Excerpt: "[T]he Investment Company Institute and several regulatory bodies with investment oversight have recently promoted the idea of eliminating 'Late Day' trading, as in all trades must be received by the mutual fund company before the market close.... This knee-jerk reaction would set the industry back 10 years ... Mutual fund companies that offer bundled services would benefit the most and have an unfair advantage in the foreseeable future." (Keith Clark of DWC Consultants on 401kHelpCenter.com)
Opinion: What Putnam Needs To Do to Hold On to Its Investors
Originally published 11/2/03. Excerpt: "Putnam needs to prove it is serious that the shenanigans have stopped, so it must adopt the better pricing model; it might also create rules that push any trade received after 2:30 p.m. into the next day, a voluntary move that would stop the market-timers cold." (Charles A. Jaffe in the Philadelphia Inquirer)
Dissent in Fund Ranks on ICI's Proposed Mutual Fund Trading Rules
Excerpt: "Friday's Wall Street Journal reported that officials at Fidelity Investments, the nation's No. 1 fund firm, are against the firm 4 p.m. trading deadline, deeming it a simplistic solution that wouldn't help anyone. At least some fund-firm executives and their supporters argue that these proposals would even disadvantage investors." (AP via [Minneapolis] StarTribune.com)
Witness List, Written Testimony: the Pension Underfunding Crisis: How Effective Have Reforms Been?
October 29, 2003. Witnesses included Barbara Bovbjerg, U.S. General Accounting Office; Robert Krinsky, The Segal Company, for the American Benefits Council; Michael S. Gordon, for the National Retiree Legislative Network; J. Mark Iwry, The Brookings Institution; and David John, The Heritage Foundation. (U.S. House of Representatives Committee on Education and the Workforce)
Overview: Pension Interest Rate Discussions Take on Broader Context
Excerpt: "In the continuing deliberations on replacing the current liability interest rate, two new proposals emerged in September. Legislation adopted by the Senate Finance Committee would eventually use a yield curve, and a bipartisan bill approved by the House would establish a corporate bond rate for two years while Congress works on developing a permanent interest rate." (Watson Wyatt)
10 Questions to Ask Before Buying a 403(b) Fixed Annuity
Excerpt: "Cutting through annuity sales pitches and paperwork can be mind boggling. Here are some questions to help in the process." (403bWise.com)
Factors Affecting Retirement Mortality
Excerpt: "The first phase of the project includes a comprehensive literature search and summary identifying 10 factors, in addition to age and gender, linked to mortality experience at or after age 65. In the second phase of the project, existing Society of Actuaries experience studies are reviewed to see which factors could be added to the studies. This phase also considers methods for reflecting the additional factors in the mortality tables." (Society of Actuaries)
Cash Balance Plan Tips Presented At ASPA Conference
Excerpt: "The plan documents should ... limit distributions to owners unless the plan is funded on a termination basis. 'The problem I foresee with cash balance plans is that if they are not adequately funded, they will not be able to terminate because of PBGC issues that might arise,' said [Norman Levinrad, President of Summit Benefit and Actuarial Services located in Eugene, Oregon]." (CCH News & Information Library)
Vacation, Sick Pay Deferrals Sticking Point for 457 Plans
State and government plan sponsors have been almost uniformly ecstatic about recent IRS regulations – but the deferral of sick and vacation pay remains a sticking point for many. (PLANSPONSOR.com; one-time registration required)
Unhappily, Several Factors Simultaneously Work Against Adequate Retirement Planning
Excerpt: "Here's a rundown of what I see as the three most damaging retirement-planning mistakes that, combined, can dramatically reduce our chances of achieving a comfortable retirement." (MONEY.CNN.com)
Welcome to new BenefitsLink advertiser SunGard Employee Benefit Systems
Excerpt: "SunGard Employee Benefit Systems is a leading provider of straight-through processing technology for participant DB and DC recordkeepers worldwide, including daily trading and cash management, pension disbursements, and interactive access via the Internet and voice response. SunGard offers practical, cost-efficient solutions that suit clients ranging from the very largest to the smallest providers of retirement plan services.
Links to Items on Executive Comp, Benefits in General
Involve Your Employees in Cost-Cutting
Excerpt: "By involving employees correctly in the cost-cutting process, employers can gain workers' buy-in and reduce or even eliminate backlash to such decisions. And, perhaps more importantly, managers may gain valuable cost-saving tips they might never have developed on their own." (HR Magazine)
Domestic Partner Benefit Issues Arising in Benefits Administration (PDF)
3 pages. Excerpt: "One of the issues that often comes up in the context of domestic partner health benefits is determining the value of benefits to be included in an employee's income. For example, an area that has not been addressed is how to value a domestic partner's coverage when the partner is added to existing family coverage and there is no incremental cost for an additional family member. Opinions of experts differ on the proper treatment in this case." (Mellon’s Human Resources & Investor Solutions)
Microsoft's Plan for Stock Grants to Replace Options Runs Into Shareholder Opposition
Excerpt: "The group voted against the plan because it wanted the company to disclose more information about the plan, specifically what percentage of the stock grants will carry performance criteria, and because those criteria aren't strong enough." (The Seattle Times)
Ohio Employers Strain to Understand, Comply with USERRA
Excerpt: "When veterans return, their civilian employers are required to reinstate corporate health insurance immediately, with limited exceptions for injuries incurred during the military service ... Employers also have several responsibilities when it comes to pensions and 401(k) plans. The USERRA requires employers to count an employee's military duty as years of service with the company in terms of eligibility, vesting and benefit accrual for a retirement plan." ([Akron] Beacon Journal via NewsAlert.com)
Newly Posted or Renewed Job Openings
Manager, Compliance
for Means & Associates, LLC
in CA
Client Service Manager - Defined Benefit
for Fidelity Employer Service Company
in NH
ERISA Consultant
for BISYS Retirement Services
in MN
401K Client Service Rep
for ADP
in NJ
Benefits Specialist
for The College Board
in NY
Qualified Retirement Plan Administrator
for Tyler, Simms & St. Sauveur, CPAs, P.C.
in NH
Director of Employee Benefits
for O'Connell Insurance Group, Inc.
in MA
Account Manager
for Hand Benefit & Trust Company
in TX
Retirement Plan Specialist
for Diversified Investment Advisors
in FL
401K Pension Plan Administrator (50K-60K)
for Praxis Search representing Manufacturing Company (outskirts of Pittsburgh)
in PA
Newly Posted Webcasts
(Post Yours!)
401(a)(9) -- What's Really Required
on December 2, 2003
presented by SunGard Corbel Inc.
Newly Posted Conferences
(Post Yours!)
Health Care Forum: Employer- Sponsored Health Care-Can It Be Sustained?
in NJ
November 19, 2003
The Northern Hew Jersey Chapter of the International Society of CEBS
Primer on Labor and Employment Law For Benefit Professionals
in OH
November 20, 2003
Presented by WEB (Worldwide Employee Benefits Network) Cleveland Chapter
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